What happens to a firm whose uses of cash exceed its sources of cash during an accounting period?

Question

Quizplus · Accepted Answer

If a firm's uses of cash exceed its sources of cash during an accounting period, it is experiencing a cash flow deficit. This means the firm has negative cash flow, which will cause a decrease in its cash balance. This can lead to the need for the firm to borrow money or to sell assets to cover its cash flow deficit. A net loss on the income statement may also occur in this situation, but it is not the direct result of the cash flow deficit.

What Happens to a Firm Whose Uses of Cash Exceed